According to Grayscale's ETF chief, David LaValle, regulators will inevitably approve exchange-traded funds (ETFs) based on cryptocurrencies other than bitcoin and ether.

LaValle expressed his bullish outlook during a roundtable discussion on Wednesday, foreseeing approval for ETFs linked to alternative cryptocurrencies within the next two to three years.

"I think 100%," he affirmed. "The path to digital asset ETFs happened to be through this regulated market on the futures side, but as the digital asset market holistically continues to expand and to mature, I mean, we've already proven that we can do it with Bitcoin [and] we're having a really fruitful conversation around Ethereum."

Hosted by the New York Stock Exchange and moderated by The ETF Store President Nate Geraci, the roundtable delved into ETFs and digital assets.

Grayscale's GBTC fund, recently converted to a spot Bitcoin ETF, debuted in January and remains the largest in the market despite significant outflows. While the outlook for spot ether ETF applications is uncertain, there is growing anticipation that the Securities and Exchange Commission will greenlight Ethereum-based investment vehicles.

Matt Hougan, chief investment officer at Bitwise Asset Management, another participant in the roundtable, emphasized the inevitability of an Ethereum ETF: "Whether we get approval in May or later, we've demonstrated that the launch of ETFs lowers costs and improves protections for investors looking to access this asset class; so I do think an Ethereum ETF is a question of when and not if."

Echoing LaValle's sentiments, Simeon Hyman, ProShares Head of Investment Strategy, stressed the likelihood of the market expanding to include other cryptocurrencies: "I can't imagine there won't be another couple of currencies that emerge sufficient of scale and size for all of us to participate. It's got to happen."

The consensus among participants was that ETFs provide a safer and more accessible route for investors to engage with digital assets. With the introduction of spot bitcoin ETFs, financial advisors are increasingly considering bitcoin as a viable addition to client portfolios.

As Hougan summarized, "We've entered the ETF era for crypto ... you're going to use this wonderful wrapper to give people what they want."